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A Project has the following Cash ows
Determine:
1. Payback period
2. Discounted payback period
3. Net present value
4. Proftability index5. IRR
Discussion
!at is t!e i"portance o# eac! o# t!e above$
discountin! rate
Project cash ows
Year (N) Cash ows (KES)
% &13'%%%'%%%'%%%( &13'%%%'%%%'%%%(
1 2'%%%'%%%'%%% &11'%%%'%%%'%%%(2 4'%%%'%%%'%%% &)'%%%'%%%'%%%(
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* 2'%%%'%%%'%%% +'5%%'%%%'%%%
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PI
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15
Discounted #actors Discountin/ 0
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oan a"ortisation calculator
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oan 15'%%%'%%%
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De#elo an ann$it% ta&le
;xa"ple
De"onstrate a case o# annuity table usin/ t!e loan calculator
1. 6ll t!e 1-% "ont!s
2. Principal a"ount repaid eac! "ont!3. Interest a"ount paid eac! "ont!
4. 7otal "ont!ly repay"ent
5. 7otal interest paid over t!e ter" o# t!e loan
*. 7otal /ross repay"ents
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1 ?iven t=o invest"ent opportunities to invest @s! 1%%'%%% as #ollo=s
Aption 1 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12
Aption 2 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12
'hich otion is &etter an wh% (*se E++EC")
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